Laundromat franchises in Australia: what to know before you buy a semi-passive business

• FranchiseScope's Register analysis has no laundromat category, so this guide doesn't quote typical setup costs. Get a line-by-line estimate and check it against independent quotes.
• If the deal is mainly an equipment purchase with a brand attached, check whether it is a franchise at all: paying market value for equipment doesn't count as a franchise payment under the Code's definition.
• Sydney Water, for example, classes laundromats as commercial trade wastewater customers, which must seek approval to discharge unless their process is a low-risk deemed process.
• The lease is central: plumbing, drainage and machines are hard to move, so the lease term, options and rent reviews shape the value of the business.
• Plan for hands-on time or a paid attendant: cleaning, machine faults, payment systems, customer issues and service washes all need someone.

Revenue comes from several streams, and the mix changes the workload. Ask for the split at existing sites.

• Self-service washing and drying, paid by coin, card or app, which is the core of the laundromat model.
• Large-capacity machines for doonas, blankets and bulky items, which can charge more per cycle.
• Service washes and wash-and-fold, where staff do the laundry for a fee: more income per load, but it needs labour.
• Commercial accounts, such as laundry for local businesses, which add volume but need collection, delivery and reliable turnaround.
• Vending of detergent and other small items.
• Revenue records: ask whether takings are recorded through machine counters, payment system reports or bank deposits, and whether you can check them independently.

Most laundromat costs are fixed or rise with machine use. Test them with real bills, not estimates.

• Rent and outgoings, a major fixed cost set by the lease and its review clauses.
• Water and sewerage charges, plus any trade waste fees. In Sydney Water's area, standard commercial processes attract management fees and waste quality charges.
• Energy: electricity and, where dryers or water heating use it, gas.
• Machine finance or lease repayments, and major repairs or replacement as machines age.
• Servicing: ask who services the machines, how quickly they respond and what it costs.
• Payment systems: card terminal and app fees, software subscriptions, and cash handling if you take coins.
• Cleaning, insurance, security and, if you offer service washes, wages and super. From 1 July 2026 super must be paid at the same time as wages.
• Franchise fees: royalties or flat fees, marketing levies and any required suppliers for detergent, parts or machines.

• Plumbing, drainage, venting and machines are built into the site, so moving is expensive. Make sure the lease term and options cover your payback period.
• Check that the permitted use covers a laundromat and any service washing or commercial laundry work you plan.
• Ask whether the landlord will support the trade waste application. Sydney Water requires the property owner or managing agent to approve it, and the property to have the relevant land-use and operating approvals.
• Check how rent is reviewed, which outgoings you pay, and who pays for plumbing and drainage repairs.
• If the franchisor or an associate leases the site to you, the Code requires it to give you the head lease or a summary of its commercial terms before you sign.
• Ask about make-good obligations, because removing machines and restoring plumbing at the end of the lease can be costly.

A laundromat can be semi-passive only if someone else does the daily work, and that costs money.

• Regular tasks: cleaning floors, benches and lint filters, clearing jams, restocking vending and checking payment systems.
• Weekly tasks: machine checks, supplier orders, banking and reviewing sales reports.
• On-call issues: breakdowns, payment faults, water leaks and customer complaints, including out of hours if the site opens late.
• Security: vandalism or theft needs a quick response and may call for cameras and alarms.
• If you employ an attendant or manager, award wages and super apply, and their pay comes out of your profit.
• Ask current owners how many hours a week they really spend on the business, and what it costs to cover their holidays.

Laundromats are sold both as franchises and as independent businesses. The difference matters for your legal protection.

• Under the Franchising Code, a franchise agreement grants a right to run a business under a system substantially determined, controlled or suggested by the franchisor, linked to its brand, with required payments to the franchisor or an associate.
• Paying market value to buy or lease equipment, fixtures or supplies needed to run the business doesn't count as one of those required payments.
• If the arrangement is a franchise, you get the Code's protections, including the information statement, a disclosure document, 14 days to consider it and a 14-day cooling-off period after entering a new agreement.
• If it isn't a franchise, those Code protections don't apply, although the Australian Consumer Law still prohibits misleading conduct.
• A franchise may bring a brand, systems, buying power and support in exchange for fees and restrictions; an independent laundromat gives you more control, but you rely on your own systems and suppliers.
• Buying an existing laundromat, franchised or not, is a business purchase: check the financial records, machine ages, service history and lease.
• Ask a lawyer whether the arrangement is a franchise before you sign anything.

• Revenue figures you can't verify from payment system reports, machine counters or bank statements.
• A lease with a short remaining term, no options, or a landlord who won't support the trade waste approval.
• Old machines with no service history, or a seller who won't say when major machines were replaced.
• Utility costs quoted as estimates rather than actual bills for the past 12 months.
• A 'franchise' that offers no disclosure document and says the Code doesn't apply, without a clear explanation of why.
• Promises of fully passive income, or returns shown without detailed assumptions.
• Required suppliers for machines, parts or detergent, with no disclosure of rebates or margins.

• Confirm in writing whether the arrangement is a franchise under the Code, and get the disclosure document if it is.
• Get 12 to 24 months of revenue reports and actual water, sewerage, trade waste, electricity and gas bills.
• Check the trade waste approval status with the local water utility and the landlord.
• Check the licences and permits for the site and your services on ABLIS, which depend on your activities, state and council area.
• Have a lawyer review the lease term, options, permitted use, outgoings and make-good clauses.
• Get an independent technician to inspect the machines and estimate when they will need replacing.
• Work out how many hours you or paid staff will need each week, and cost them, then model your return with higher rent and utility prices.
• Get independent legal and accounting advice before you sign.